# What is an LRT?

A liquid restaking token (LST) represents a way to keep your investments liquid while engaging in the restaking process on EigenLayer. Typically, depositing capital into EigenLayer would make your funds illiquid. However, by depositing an LST into Prime Staked ETH, you receive an equivalent amount of primeETH, ensuring your capital continues to be restaked on EigenLayer.

The advantage of this approach is threefold. First, it allows you to benefit from EigenLayer points, which are rewards you'd normally receive for directly depositing into EigenLayer. Second, you also become eligible to earn PrimeETH experience points (XP). Finally, holders also earn the underlying ETH staking rewards from the LSTs.

The process of minting primeETH, in return for your LST deposit, keeps your funds liquid. This means you can use primeETH within the DeFi ecosystem, all while earning rewards from EigenLayer, PrimeETH XP, and ETH staking rewards. This system is designed to maximize the utility and liquidity of your investments in the DeFi space.


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